subject to

6 Replies

Hello every one. i'm looking into buying a house that the mortgage is fully paid. Can someone explain to me the process of buying it subject to. i would love to fix the house and pay the seller when i sell. thank you all for your time.

laurent

Hello Laurent. A Subject To would only be used if the seller had an existing mortgage (your purchase is "subject to" that mortgage). In that case you would take over the mortgage payments. In your case you would want to talk to the seller about offering owner financing or a lease option. You would be paying monthly, but your lump sum payment would not come until you were ready to sell. You would want to try to negotiate no, or very little, money upfront (which might make the lease option a better fit).

Originally posted by @Laurent SPIRA :

Hello every one. i'm looking into buying a house that the mortgage is fully paid. Can someone explain to me the process of buying it subject to. i would love to fix the house and pay the seller when i sell. thank you all for your time.

laurent

  •  Free and Clear Houses
  • Think about "whole tailing" the house.
  • You do a JV with the seller

buy the house with a private mortgage, no payments for say 6 months (moratorium)

you bring in private money for the rehab

you place a lien on the house for private lender money plus interest plus you jv fee say 5% of value or $10K min

you list the house with your agent, house sells, you get paid and private lender gets paid

You need a really good attorney, seller could sue you if you did not perform on the JV.

Medium banner reiskills 997   copyBrian Gibbons, REISkills | [email protected] | 818‑400‑3046 | http://MyREISkills.com

Thanks Brian,

I'm kind of new at this. Can you explain what jv is?

Also Brian if i'm doing a joint venture with the seller why do i need to get a mortgage?

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